Bitcoin price has enough momentum left to attempt an extended bull run towards $14,00
There is quite a bit of opinion that Bitcoin price is still motivated enough to try a long rally towards $ 14,000 as the BTC / USD trading pair has had a lot of support near $ 10,500 and keeping BTC above. This will make the momentum smoother.
Bitcoin price still looking ahead for an upside move thanks to supportive macro fundamentals
Jacob Canfield, Founder of Signal Profits, placed Bitcoin on a Fibonacci Retracement graph, a set of horizontal levels that indicates where the supports and resistances are most likely to occur. He noted that BTCUSD had ample of support near the $ 10,500 level, adding that holding above it would ensure a smooth upside move towards $ 14,000.
As long as $BTC can hold $10,500 support, I think we continue to move up to test the 1.618 extension
1.618 is at $13k and 2.618 is around $14,800
Yesterday’s drop was possibly price suppression and re-accumulation of longs and a bear trap on shorts to fuel the next push up pic.twitter.com/9UEs7T5Toe
— Jacob Canfield (@JacobCanfield) August 12, 2020
The statement followed Bitcoin’s third failed attempt to break above $ 12,000. Last week, the cryptocurrency fell by more than $ 1,500 within minutes after testing the said level. And this week, it almost vast the same pullback move, albeit falling less vigorously than the last time.
Traders caught the price close to $ 11,500, showing that there were enough people buying Bitcoin on the exchange mentioned above. Price has recovered a modestly to $ 11,600, only to find itself stuck in a range between $ 11,650 and $ 11,500.
Josh Rager, a market analyst, focusing on cryptocurrencies, said BTCUSD needs to surpass $ 11,900 before thinking of reaching the excess levels. However, like Canfield, it also acknowledges the strength of $ 10,500 in keeping the pair’s uptrend intact.
“Reclaim $11,900 on a daily close, and we go up to $12,500 and above. Not worried one bit in this range unless price breaks below $10,500.”
$ 10,500 turns into support after acting as stiff resistance for almost a year. Bitcoin repeatedly failed to climb above it, confirming higher selling pressure. Just for today, selling pressure has turned into buying influence.
That makes $ 10,500 the frontier level for Bitcoin’s short-term bearish/bullish trend determination. A break below this level will make it a level of resistance, which could create an additional barrier between the cryptocurrency and its $ 14,000 price target.
Regardless of the bearish technical indicators involved, Bitcoin is still heading towards a bullish move thanks to supportive macro fundamentals. Cryptocurrencies surged more than 60% earlier this year due to the increased bid for safe-haven assets among investors. Their demand comes on inflation concerns led by the Federal Reserve’s open stimulus package and near-zero interest rate policy.
This decision reduced US bond yields to 0.5%. It also makes the US dollar the weakest in the past two years.
Just this week, as AZCoin News reported, public company MicroStrategy purchased $ 250 million worth of Bitcoins as its tactical measure to combat potential inflation. Before them, it was veteran hedge fund investor Paul Tudor Jones, who allocated 1% – 3% of his entire portfolio to Bitcoin futures.
Konstantin Anissimov, CEO at CEX.IO, said:
“The events marked the beginning of a greater institutionalization of Bitcoin. Lower interest rates, followed by poorer returns, led investors to seek profits from cryptocurrencies. And the trend may continue ahead.”
A listed company with strict requirements for financial prudence on its shareholders has acquired a significant amount of BTC, announced its decision publicly and forcefully, and took a stance adamantly that the choice will not hurt the company’s stock price or corporate social responsibility.
“This sends a signal of wide market acceptance of Bitcoin as a serious asset class for investment, and we see the market react positively to the news.”
- Bitcoin Price Recovered Back Above $11.500, Leading Traders To Suggest Renewed Attack On $12.000 Could Occur Soon
- Bitcoin Price Getting Closer To A Key Level That Could Lead The Crypto Down To $9,000 If It Is Broken Below